An Automobile Service Contract Can

question 80

Multiple Choice

An automobile service contract can:

• A)reduce operating costs of the vehicle.
• B)cover regular maintenance.
• C)provide automobile insurance at a discount.
• D)cover repairs not included in the manufacturer's warranty.
• E)help the buyer stay informed of government safety recalls.

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Definitions:

Freight Charges

Freight Charges are costs incurred in transporting goods from one place to another, often included as part of the cost of goods sold or inventory for businesses.

Perpetual Inventory

A method of inventory management where record keeping is updated continuously as transactions occur, providing a real-time view of stock levels.

Inventory Account

A financial account that tracks the cost of inventory a company has purchased to sell, including raw materials, work-in-progress, and finished goods.

FOB Destination

A shipping term indicating that the seller bears the transportation cost and risk until the goods are delivered to the buyer's location.